A method of valuing a business based on the value of the company's net worth is the:
A) balance sheet technique.
B) adjusted balance sheet technique.
C) earnings approach.
D) opportunity cost technique.

Question

Quizplus · Accepted Answer

The balance sheet technique values a business based on the company's assets minus its liabilities, resulting in the company's net worth or book value. This method does not consider factors such as future earnings potential or market demand for the business, but it is a straightforward and objective method of valuation based on the company's financial statements.

A Method of Valuing a Business Based on the Value